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Fuck Cars
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Only maybe, and assuming that the properties didn't already belong to the city anyhow. Often a city will purchase property to be able to eat the costs for new businesses moving in. However, the back drop is empty, so this wasn't a popular location. If the city couldn't get someone to rent without modernization, then the result was fair for property that was likely built out of the way when the city was growing since op said they were a little older and the population was stagnate.
I'm not arguing the road was a good call, I'm just saying keeping the buildings may not have been either. Another use would have been smarter, heck, even a solar farm given the open area to provide energy for the local community if the state government hasn't banned it like some.